In an attempt to freak out everyone in the video game industry, there are a flurry of rumors circulating that Microsoft may be planning to purchase Electronic Arts.Although reuters.com called the recent rumor "unsubstantiated chatter" and seattlepi.com received confirmation from Microsoft spokesman David Dennis who said "There is no truth to this rumor" and "we have no plans to purchase EA," that didn't stop EA stocks from reaching about $20 a share today.
Alas, that affect would a monstrous merger like Microsoft purchasing EA have on the entire industry?
A whole lot.
Electronic Arts has historically been the single largest video game publisher in the industry releasing the most popular franchises on the market such as "Rock Band," Need for Speed," and the hugely popular "Madden" brand in their "EA Sports" line.
If Microsoft purchased EA and dissolved it into its publishing network, all of these multi-platform titles could potentially become Xbox 360 exclusives.
That would mean that you would have to own a Xbox 360 or PC to play "Madden," or even something like "Spore" or "Burnout."
However, we saw the success Microsoft last had with purchasing development studio "Rare." Which has yielded about two games - "Perfect Dark Zero" and "Banjo Kazooie: Nuts and Bolts" - which is fewer than the Nintendo 64 received in its heyday.
Because of that, Microsoft may allow select franchises such as all "EA Sports" titles to remain multi-platform while collecting royalties from Nintendo Wii and Playstation 3 purchases.
Other franchises could become Xbox 360 exclusive and would create a substantial dent library of games for both Nintendo and Sony making the Xbox 360 a potential forerunner and possible victor in the current console war.
A grim possibility indeed, unless you're a Xbox 360 owner.
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